The company's profitability has collapsed, evidenced by a 2025Q4 gross margin of -140.2% and an operating margin of -174.0% as revenue contraction accelerates.
| Sales/Revenue | 4.75B | 5.51B | 5.92B | 6.45B | 6.95B | 7.31B |
| Revenue Growth % | -13.8% | -6.88% | -8.28% | -7.22% | -4.95% | - |
| Cost of Goods Sold | 0 | 1.48B | 1.58B | 1.62B | 1.7B | 1.93B |
| COGS % of Revenue | - | 26.89% | 26.73% | 25.12% | 24.39% | 26.36% |
| Gross Profit | 0 | 4.03B | 4.33B | 4.83B | 5.26B | 5.38B |
| Gross Margin % | - | 73.11% | 73.27% | 74.88% | 75.61% | 73.64% |
| Gross Profit Growth % | -100% | -7.08% | -10.25% | -8.12% | -2.4% | - |
| Operating Expenses | 5.76B | 1.98B | 4.53B | 2.07B | 2.15B | 2.67B |
| OpEx % of Revenue | 121.25% | 35.88% | 76.57% | 32.16% | 30.9% | 36.56% |
| Selling, General & Admin | 456M | 438M | 1.3B | 1.21B | 1.14B | 1.36B |
| SG&A % of Revenue | 9.6% | 7.95% | 21.99% | 18.82% | 16.39% | 18.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - |
| Operating Income | -1.01B | 2.05B | -195M | 2.75B | 3.11B | 2.71B |
| Operating Margin % | -21.25% | 37.24% | -3.3% | 42.72% | 44.71% | 37.07% |
| Operating Income Growth % | -149.2% | 1151.79% | -107.08% | -11.36% | 14.64% | - |
| EBITDA | -324M | 2.8B | 628M | 3.62B | 4.12B | 4.03B |
| EBITDA Margin % | -6.82% | 50.91% | 10.62% | 56.06% | 59.23% | 55.05% |
| EBITDA Growth % | -111.55% | 346.5% | -82.63% | -12.19% | 2.26% | - |
| D&A (Non-Cash Add-back) | 685M | 753M | 823M | 860M | 1.01B | 1.31B |
| EBIT | -884M | 2.08B | 2.21B | 2.75B | 3.11B | 2.71B |
| Net Interest Income | -91M | -62M | -80M | -172M | -286M | -353M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | - | - | - | - | - | - |
| Other Income/Expense | - | - | - | - | - | - |
| Pretax Income | -975M | 2.01B | -270M | 2.59B | 2.82B | 2.3B |
| Pretax Margin % | -20.54% | 36.56% | -4.56% | 40.16% | 40.51% | 31.48% |
| Income Tax | 352M | 527M | 561M | 671M | 709M | 595M |
| Effective Tax Rate % | -36.1% | 26.17% | -207.78% | 25.91% | 25.18% | 25.85% |
| Net Income | -1.33B | 1.49B | -831M | 1.92B | 2.11B | 1.71B |
| Net Margin % | -27.95% | 27% | -14.05% | 29.76% | 30.31% | 23.34% |
| Net Income Growth % | -189.24% | 278.94% | -143.3% | -8.92% | 23.43% | - |
| Net Income (Continuing) | -1.33B | 1.49B | -831M | 1.92B | 2.11B | 1.71B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | - | - | - | - | - |
| EPS (Basic) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | 27.05% | 101.05% |
Accelerating secular revenue erosion
As indicated by the most recent quarterly data, Qwest Corp. experienced a 15.0% year-over-year revenue decline, marking a significant acceleration in the contraction of its legacy wireline business that continues to outpace any potential gains from modern broadband service offerings or other ancillary revenue streams.
The consistent downward trend in top-line performance suggests that the company is struggling to retain its legacy customer base in an increasingly competitive telecommunications landscape. Investors should monitor whether this contraction reflects a structural loss of market share that may be difficult to reverse without substantial capital investment.
Based on the provided financial statements, the company's gross margin plummeted to -140.2% in 2025Q4, a stark reversal from the 70% range observed in previous quarters, which suggests that the cost of maintaining aging infrastructure is becoming increasingly disconnected from the company's ability to generate revenue.
This extreme margin compression implies that the firm may be absorbing significant non-cash impairment charges or facing unexpected operational cost spikes. Such volatility warrants further investigation into whether these figures represent a permanent shift in the cost structure or temporary accounting adjustments related to asset devaluation.
According to the reported income statement figures, the company's operating margin collapsed to -174.0% in the most recent quarter, demonstrating that the firm currently lacks the necessary operating leverage to scale its business effectively against its high fixed-cost base and declining top-line revenue performance.
The inability to maintain positive operating income suggests that the current expense structure is misaligned with the company's shrinking revenue footprint. This lack of efficiency may indicate that management is facing significant challenges in rationalizing its field operations and overhead costs in the face of secular decline.
While the company's reported net margin of -178.1% paints a dire picture of current profitability, some analysts might argue that the underlying physical conduit and real estate assets possess latent value that is not currently reflected in the distressed income statement performance of the wireline segment.
However, this optimistic view may overlook the reality that these assets require significant capital expenditure to remain relevant in a modern fiber-based market. Investors should remain cautious, as the potential for asset monetization may be constrained by the company's limited liquidity and the ongoing burden of legacy liabilities.
Quick answers to the most common questions about buying CTDD stock.
For fiscal year 2025, Qwest Corp. 6.75% NT 57 (CTDD) reported total revenue of $4.75B. This represents a 35.1% decline compared to $7.31B in 2020.
Qwest Corp. 6.75% NT 57 (CTDD) reported a net loss of $1.33B for the fiscal year ending 2025.
Qwest Corp. 6.75% NT 57 (CTDD) reported an operating income of $-1009.0M, resulting in an operating profit margin of -21.3%. This margin reflects the operational efficiency of the business before interest and taxes.